Mayor Cheryl A. Young called the regular meeting to order at 7:30 p.m. Harold Olsen delivered the invocation and Mayor Young led the flag salute.

Mayor Cheryl A. Young

Councilor Bob Schmor

Councilor William G. Guy

Councilor Gary Hudson

COUNCIL MEMBERS ABSENT:

Councilor Tyra A. Schroeder

ALSO PRESENT:

Micah Olson, Public Works Superintendent

Leahnette Rivers, City Administrator/Recorder

ATTORNEY PRESENT:

None.

A quorum was present and due notice had been published.

AGENDA ITEM 2 PUBLIC HEARINGS: None.

AGENDA ITEM 3 CITIZEN INPUT: James Molski of Columbia City asked if there would be an update on Trestle Beach during this meeting.

Leahnette Rivers said the Parks Committee will be meeting with representatives from ODOT, ODOT Rail Division, Portland & Western Railroad, Port of St. Helens, and Morse Bros. next Thursday to talk about access to Trestle Beach. She said we are looking at obtaining access under the existing railroad trestle.

AGENDA ITEM 4 COUNCIL REPORTS:

4.1 Parks Committee: In the absence of Chair Schroeder, Mayor Young referred the Council to the February 15, 2005, Parks Committee meeting minutes. Micah Olson noted that a chipper will be rented and operated by volunteers in Bundy Memorial Park tomorrow.

4.2 Water Source and Development Committee: No report.

4.3 Street Committee: Chair Hudson said the Traffic Analysis for US30/"L" Street Bridge Project is available for review if anyone is interested.

4.4 Sewer Committee: No report.

4.5 Library Committee: Liaison Hudson said the Friends will meet on February 22, 2005.

4.6 Other reports: None.

Leahnette Rivers asked the Council to add item 5.6 and delete item 5.4.

MOVED (HUDSON), SECONDED (GUY) AND CARRIED BY ROLL CALL VOTE TO APPROVE THE CONSENT AGENDA AS AMENDED. Councilors Schmor and Guy abstained from voting because they did not attend the February 3, 2005, meeting.

AGENDA ITEM 6 UNFINISHED BUSINESS:

Leahnette Rivers asked that this matter be postponed until the next Council Meeting because additional revisions need to be incorporated into the policies.

Leahnette Rivers explained that last year the 2004/05 Budget was adopted with an anticipated water rate increase in February 2005, equal to approximately $2.00 per month per customer. She said we also expected to have our first Safe Drinking Water Loan Payment due in December 2004. However, she said because the completion date of our project was extended, our loan payment due date was extended to December 2005.

Ms. Rivers said as a condition of our 1% interest rate, we must charge at least $53.68 per month for 1,000 cubic feet of water usage, and we have until October 1, 2007 to reach that amount. She said we currently charge $45.00 for 1,000 cubic feet of water usage. She said we can structure our rates in a variety of ways to reach the required charge.

Ms. Rivers said we currently spend approximately $120,000 per year purchasing water from St. Helens, and if we acquire the Ranney Collector Well we will no longer need to purchase water from St. Helens. However, we will need to increase our operation and maintenance costs to operate the well.

Ms. Rivers reviewed a listing of sample accounts showing water history for the past 12 months. The listing provided charges under the current rate structure, which is $26.00 for the first 499 cubic feet of water, $3.00 for each additional 100 cubic feet up to 999 cubic feet, and $4.00 for each additional 100 cubic feet. The listing also showed four optional rate structures. Option 1 increased the minimum charge by $2.00, Option 2 increased each of the 2 volume charges by $0.50, Option 3 increased the minimum charge by $1.00, and increased each of the 2 volume charges by $0.25, and Option 4 increased the first volume charge by $1.00, and decreased the second volume charge by $0.25.

The Council discussed the rate options at length with staff. Councilor Hudson said he prefers Option 3 because it divides the increase between the base rate and the volume rates, resulting in a more even percentage increase for all users. Ms. Rivers said Option 3 will generate approximately $16,782.00 per year, equal to an overall percent increase of 4.91%. She said a very low usage account would pay approximately $3.76% more, while a high usage account would pay 5.27% more.

Ms. Rivers said the most recent water rate increase consisted of a $2.00 increase to the base rate. She said the annual loan payments are nearly $120,000.00 annually. She said the rate increase we are considering will not generate enough revenue to make the loan payment. She said we had planned on using system development charge revenues to supplement usage revenues to make the loan payments as we phase in rate increases to meet the required rate. She said we have until October 2007 to reach the required rate of $53.68 for 1,000 cubic feet, but we need to have the rates adopted by October 2005.

Councilor Schmor asked if the $53.68 will be reduced if we don't use all of our loan funds. Ms. Rivers explained that the $53.68 is based upon the median income for our community according to the 1990 US Census and has nothing to do with the amount of money that we borrow. She said we can look at interest rates under other loan options if we don't spend all of our loan funds to see if we can reduce our annual payments under a higher interest rate. She said, however, that it is likely that the additional interest will wash out any benefit.

Ms. Rivers suggested the Council advertise a public hearing in the March 2005 Newsletter to discuss the propose rate increase. Councilor Hudson asked if we can project all of the rate increases through October 2007 at this public hearing. Ms. Rivers said we can, but the rate projections would be "worst-case scenario" because they will change based upon whether or not we acquire the Ranney Collector and the actual final completion date of our project. She said it may be better to inform the public of the need for additional rate increase in the future, but not mention specifics at this time.

MOVED (HUDSON), SECONDED (GUY) AND CARRIED UNANIMOUSLY TO SCHEDULE A PUBLIC HEARING TO CONSIDER RATE OPTION 3.

Leahnette Rivers explained that new state law that takes effect on March 1, 2005, requires that each City adopt new rules governing public contracting. As a result, she said the City's current rules need to be repealed and new rules adopted. She recommended we add a new section to Council Bill No. 05-354 as follows:

"Section 2. Effective Date: This Ordinance shall take effect March 1, 2005."

She also recommended Section 2, Emergency Clause, be renumbered as Section 3.

MOVED (SCHMOR), SECONDED (GUY) AND CARRIED UNANIMOUSLY TO DECLARE AN EMERGENCY.

MOVED (GUY), SECONDED (HUDSON) AND CARRIED UNANIMOUSLY TO ADOPT COUNCIL BILL NO. 05-354 WITH THE RECOMMENDED CHANGES.

MOVED (HUDSON), SECONDED (SCHMOR) AND CARRIED UNANIMOUSLY TO ADOPT COUNCIL BILL NO. 05-353.

This item was postponed until the next meeting.

Sewer problem: Mayor Young said the Crouse family is very appreciative of Micah Olson assisting them with a recent sewer problem.

Speed monitor: Judy Davis and Gabriele Peterson thanked the Council for placing the speed-monitoring device in their neighborhood.

Curbside yard debris survey: Judy Davis and Gabriele Peterson questioned the results of the yard debris survey. Leahnette Rivers said of the first 84 responses, 31 were in favor of Option A (optional service), 47 were in favor of Option B (mandatory service), and 6 were in favor of offering no service.

2005-06 Policy Goals and Objectives: The Council reviewed the 2004-05 Policy Goals and Objectives and discussed changes at length with staff. Leahnette Rivers will prepare draft 2005-06 goals based upon the Council's input for review during the next meeting.

AGENDA ITEM 9 ADJOURNMENT:

There being no further business to come before the Council, the meeting adjourned at 8:50 p.m.

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